Where this breaks down though is that contributory infringement is a still a thing if you offer a service aids in copyright infringement and you don't do "enough" to stop it.
Ie, it would all be on the end user for folks that self host or rent hardware and run an LLM or Gen Art AI model themselves. But folks that offer a consumer level end to end service like ChatGPT or MidJourney could be on the hook.